| Case ID |
39ce357d-6251-42f3-9ece-7fe33a4afae9 |
| Body |
View case body. Login to View |
| Case Number |
Complaint No.918-L of 2002 |
| Decision Date |
Nov 28, 2002 |
| Hearing Date |
|
| Decision |
The decision emphasized that tax liability from public companies could not be recovered from a deceased director under Section 77 of the Income Tax Ordinance, 1979. The court found the recovery actions against the deceased director arbitrary and contrary to law. Tax due from public companies should not have been pursued against the former director, highlighting that the definitions of public and private companies under the Companies Ordinance, 1984 must be adhered to. The Federal Tax Ombudsman recommended the withdrawal of the Recovery Certificate and refund of excess amounts collected, along with compensation. An inquiry was also suggested to identify failures in legal actions regarding the tax demands. |
| Summary |
This case involved the Federal Tax Ombudsman addressing the tax liability of public companies and the actions taken against a deceased director for tax recovery. The Ombudsman ruled that recovery of tax from a deceased director for public companies was unjustified and contrary to the law. The decision highlighted the necessity of following proper legal definitions and procedures when determining tax liabilities. It also pointed out mal-administration in the recovery process and the need for accountability regarding the actions taken against the legal heirs of the deceased. The recommendation included the withdrawal of the Recovery Certificate and a directive for a refund of amounts collected in excess of the legal tax demands. This case serves as a crucial example of the legal principles governing tax recovery and the responsibilities of tax authorities in their execution of duties, ensuring compliance with established laws. |
| Court |
Federal Tax Ombudsman
|
| Entities Involved |
Not available
|
| Judges |
Justice (Retd.) Saleem Akhtar
|
| Lawyers |
Zahid Parvez,
Abdur Rehman Warraich
|
| Petitioners |
Mian Asghar Ali
|
| Respondents |
Secretary, Revenue Division, Islamabad
|
| Citations |
2003 SLD 131,
2003 PTD 1482,
(2003) 88 TAX 261
|
| Other Citations |
1999 PTD 2940,
1981 SCMR 1192,
1985 CLC 1582
|
| Laws Involved |
Income Tax Ordinance, 1979,
Federal Tax Ombudsman Ordinance, 2000,
Income Tax Rules, 1982,
Companies Ordinance, 1984
|
| Sections |
77,
74,
FirstSched.,
PartIV,
Para.B(2),
Cl.(2),
2(3),
9,
74,
159,
2(28),
2(30)
|